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Capacity cost measures and decisions: Two field studies
Author(s) -
Hertenstein Julie H.,
Polutnik Lidija,
McNair C. J.
Publication year - 2006
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20199
Subject(s) - control (management) , field (mathematics) , business , industrial organization , operations management , accounting , economics , computer science , management , mathematics , pure mathematics
To control performance, a firm has to understand productive capacity and its use. This article reports a field study where two manufacturing firms examined the implications of using theoretical versus practical capacity—in particular, how managers interpreted and formulated plans to respond to the alternative ways of defining and measuring capacity. © 2006 Wiley Periodicals, Inc.